Mcdonalds Report

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Table of Contents

Table of Contents…………………………………………………………………..1

Terms of Reference………………………………………………………………..2

Procedure……………………………………………………………………………8

Findings…………………………………………………………………………….13

Conclusion…………………………………………………………………………77

Evaluation………………………………………………………………………….90

Recommendations………………………………………………………………..97

Bibliography………………………………………………………………………102

1.0 Terms of Reference

To Shareholders

From Joseph Healy

Chairman

Ref MCD1

Date 18 January 2013

1.1 Introduction

A report of the company needs to be created by the chairman of major fast food chain McDonalds which will provide research of the external influences of McDonalds and how they effect or impact on the company, the findings will contain; Legal, Economic, Environmental and Technological Influences, then a conclusion will be made of the findings and an evaluation of the external influences and suggestions on recommendations on how McDonalds can overcome these influences.

History/Overview of McDonalds

McDonalds was founded in 1940 by Richard and Maurice McDonald and was originally called McDonalds Bar-B-Q Restaurant, which was then changed to just McDonalds in 1948, the business was then introduced to Ray Kroc who then became the new McDonalds franchising agent. In 1955 Ray Kroc founded the McDonalds Corporation. Ray Kroc later purchased the rights to McDonalds from Richard and Maurice McDonald in 1960.

Throughout the 60’s and 70’s McDonalds experienced massive growth and development and dramatic increase in the number of McDonald’s restaurants, In 1968 McDonalds announced the opening of their 1000th restaurant. In 1961 Ray Kroc bought out the remaining shares that Richard and Maurice McDonald owned giving him total control of the company, a year later the much popular and well known character Ronald McDonald was introduced.

Ray Kroc focused on making McDonalds the number one fast food chain in America and made the company a public limited company in 1965 selling shares in the stock market between $20 and $30 dollars per share. In 1968 past employee Fred Turner became president of the company; however Ray Kroc remained CEO of the company up until 1973. McDonalds also opened its very first restaurant in the UK in 1974 and have opened 1200 restaurants in the UK since then; of the 1200 restaurants opened in the UK 600 of them are franchises. In 1975 McDonalds opened their first Drive-Thru which proved to be very popular and successful for McDonalds.

During the 80’s people were becoming more health conscious, and to keep up to date with this McDonalds introduced their ready-to-eat salads to try and entice customers who were health conscious about what they were eating. McDonalds continued to expand and go from strength to strength, in 1992 Malcolm Quinlan became president of the company and Fred Turner became chairman. Quinlan’s first year as CEO proved to be successful with the opening of 600 new restaurants in America and around the world.

Despite rapid expansion through the early 90’s McDonalds started to cut back on its expansion within the US as it opened 1,130 restaurants in 1995 and opened only 400 units in 1997. During 1997 McDonalds launched a new product the ‘McFlurry’ Dessert which was developed by a Canadian franchise proved to be very successful. McDonalds opened their largest restaurant in 2011 situated in the 2012 Olympics site in London and can hold up to 1,500 people.

McDonalds are one of the most successful and influential franchising businesses to date with a total of 68 million customers in 119 different countries. When a McDonald’s restaurant is newly opened it is either operated by a franchisee or the franchisor which are the company itself. The company’s main headquarters is situated in Oak Brook, Illinois in the United States. Approximately there is a total number 34,000 McDonalds...
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